A Study on
“Employees’ Attitude towards Monetary and Non-Monetary Rewards and Its Effect on Attrition”
(With Special Reference to Education Sector)
Submitted in partial fulfillment of the requirements of
The M.B.A Degree Course of Bangalore University
Submitted By
SHWETHA R (REGD.NO: 05 XQCM 6090)
Under the Guidance and Supervision of Prof. SAVITHA.G.R
M.P.BIRLA INSTITUTE OF MANAGEMENT Associate Bharatiya Vidya Bhavan
# 43, Race Course Road Bangalore-560001
DECLARATION I hereby declare that this dissertation entitled “A Study on Employees’
Attitude towards Monetary and Non-Monetary Rewards and Its Effect
on Attrition - (With Special Reference to Education Sector)” is the
result of my own research work, carried out under the guidance and
supervision of Prof. Savitha.G.R, MPBIM Bangalore.
I also declare that this dissertation has not been submitted earlier to any
Institute/Organization for the award of any degree or diploma.
Place: Bangalore
Date: SHWETHA R
Acknowledgement
There are some people, who simply by being what they are influence and
inspire us to do things, which we never thought ourselves capable of doing. Among them
are my parents, my teachers and friends to whom I wish to extend my gratitude on the
event of completion of this project.
I wish to extend my deep sense of gratitude to our Principal,
Dr.N.S.Malavalli, Principal, M.P.Birla Institute of management, Bangalore, for allowing
me to do this project.
I am extremely thankful to Prof. Savitha, M.P.Birla Institute of
Management, Bangalore, without whose valuable inputs this project would have been
incomplete.
Finally, I express my sincere gratitude to all my friends and well-wishers
who helped me in doing this project.
Shwetha R
PRINCIPAL’S CERTIFICATE
I hereby certify that this dissertation entitled “A Study on Employees’
Attitude towards Monetary and Non-Monetary Rewards and Its Effect
on Attrition - (With Special Reference to Education Sector)” is the
result of research work carried out by Shwetha R under the guidance
and supervision of Prof. Savitha.G.R, M P Birla Institute of
Management, Bangalore
Place: Bangalore Date: ( Dr. N. S. Malavalli)
GUIDE’S CERTIFICATE I hereby certify that this dissertation entitled “A Study on Employees’
Attitude towards Monetary and Non-Monetary Rewards and Its Effect
on Attrition - (With Special Reference to Education Sector)” is a result
of the research work carried out by Shwetha R under my guidance and
supervision.
Place: Bangalore Date: (Prof. Savitha.G.R)
Table of Contents Chapter No. Contents Page No.
1
Executive summary 1
Introduction
2.1 Introduction to the research topic
2
2.2 Indian Education sector
3
2.3 Background of research study
4
2.4 Problem statement
5
2.5 Justification and significance of the research
5
2.6 Research Objectives
5
2.7 Introduction to Rewards
6
2.8 Introduction to Attitude
7
2
2.9 Effect of Rewards on Retention
8
Review of the Literature
14-22
3.1 Review of the literature
3.2 Source of the literature reviewed
3.3 Relevant portion in literature that has bearing on the current research
3
3.4 Benefits to the Researcher from the review.
Research Design
4.1 Type of research
23
4.2 Research method
23
4
4.3 Research technique 23
4.4 Data collection sources
23
4.5 Data gathering procedure
24
4.6 Population of the study
24
4.7 Statistical tools
24
4.8 Scope of the study
24
4.9 Limitations of the study
24
4.10 Operational definition of concepts
25
Data Analysis and Interpretation
5.1 Data analysis and interpretation
26
5
5.2 Findings
65
Summary and conclusion
6.1 Conclusion
67
6
6.2 Suggestions and Recommendations
67
Annexure
7.1 Questionnaire 69
7
7.2 Bibliography 72
List of Charts/ Graphs
Chart No.
Title Page No.
1 Preference for Monetary benefits by the Respondents
27
2 Respondent’s comment on their attitude towards non-monetary rewards
29
3 Preference for non-monetary benefits by the respondents
31
4 Respondent’s liking of job
33
5 Factors indicating job satisfaction
35
6 Impact of compensation on level of motivation
37
7 Factors influencing motivation on job
39
8 In-house recreational facilities provided by Institutes
41
9 Institutions providing additional facilities to faculty members
43
10 Factors influencing increase in attrition rate
45
11 Rate of employee turnover in organizations
47
12 Causes for attrition in Education sector
49
13 Flow of positive attitude from institutions to control attrition
51
14 Measures taken by Educational institutions to control attrition
53
15 Respondents’ preference to measures of controlling attrition
55
16 Faculty members’ response towards continuing their relationship with the institute
57
17 Institutions’ response to improve employees’ attitude on job
59
18 Respondent’s preference for accepting overseas projects provided by the institute
61
19 Counseling facilities provided by the institutions 63
Chapter 1
Executive summary
Executive summary
This research titled “A Study on Employees Attitude towards Monetary and Non-
Monetary Rewards and Its Effect on Attrition - (With Special Reference to Education
Sector)” has been done at selected educational institutions of Bangalore. The research has
been a result of recent increase in attrition. The problem is extremely high in the
education sector, with faculties facing problems related to recognition by the institutions.
They prefer changing jobs in return for better non-monetary rewards such as recognition.
This study focuses on employees’ attitude and their interest in job.
Chapters 2 explain the importance of this study in retaining talent at educational
institutions in current competitive world by giving an overview of the employees’ attitude
in education sector. It also explains the objective of the study.
The 3rd chapter contains literature review. Various research outcomes delivered
by some of the research institutes and researchers are studied. This gives a base to the
study conducted further.
4th
chapter concentrate on the design of the research. This research has adopted
survey method to arrive into certain conclusions.
Data analysis and interpretation has been done in chapter 5. This chapter
consolidates the whole data of attitude survey into charts and graphs and is followed by
interpretation and inferences. It also includes the finding of the survey.
Chapter 6 summarizes the conclusions. It also includes certain recommendations
been provided to the institutions in line with their capability and requirements. The last
chapter 7th includes a copy of the questionnaire and bibliography.
Chapter 2
Introduction
Overview of the chapter
2.1 Introduction to the research topic
2.2 Introduction to Education sector
2.3 Background of research study
2.4 Problem statement
2.5 Justification and significance of the research
2.6 Research Objectives
2.7 Introduction to Rewards
2.8 Introduction to Attitude
2.9 Effect of Rewards on Retention
2.1 Introduction to the research topic The most important asset of any business is its human family of workers -managers and
employees. Increasing the capabilities and productivity of the staff is simply
smart business management. From the purely humanitarian standpoint, it is also a moral
obligation.
As the economy grows stronger and the range of new work expands, there is a renewed
focus on the importance of attracting and retaining qualified staff. In the scramble to
attract and keep top talent, compensation once again becomes a much-discussed topic for
both employers and employees.
Empirical evidence shows that employee loyalty and factors influencing retention were
often based on the gender, age and income of the respondents:
• Female employees are more interested in a flexible work schedule than their male
counterparts (17 percent vs. 11 percent) and were more likely to respond
positively to "a raise" (52 percent vs. 48 percent); 18 percent of males cited
improved benefits, as did 14 percent of females. Only eight percent of males
identified stock options, as opposed to 17 percent of males in the year 2000
survey. The female response to stock options remained consistent from last year's
survey, at six percent.
• In every age group but those 55 and older, roughly 50 percent placed the highest
value on increased pay. For those 55-to-64, 48 percent cited "a raise," but for
employees over 65, that response dropped dramatically to nine percent.
Interestingly, both the oldest group, the over 65s, and the youngest, the 18-to-24s,
ranked flexible work schedules as their second priority, at 31 and 23 percent,
respectively. Among those ages 35-to-44, improved benefits received the second
highest response, at 23.5 percent annual
• While household income plays a role in the employee retention debate, that role
isn't always predictable. Of those respondents with household incomes of less
than $25,000, 47.5 percent said more money would influence a decision to stay
with an employer, while 21 percent ranked improved benefits first. Conversely, of
individuals with household incomes in excess of $75,000, 52.5 percent said they
would continue with a current employer if given "a raise," while a scant 11
percent cited improved benefits as their employer's top lure.
People typically believe that compensation is about money, with employee benefits
receiving serious, but secondary, consideration. For that reason, management of
educational institutions tends to concentrate on staying competitive primarily in those
areas. While both are important, salary and benefits should not be a firm’s only
compensation administration consideration.
2.2 Indian Education sector Education accounts for about $3 trillion of the world's economy. The General Agreement
on Trade in Services (GATS), a hotly debated agreement of the WTO (World Trade
Organization), is aimed at increasing trade liberalization internationally, while including
`education' as a service. In absolute terms, India has the third largest number of higher
education enrolments after China and US.
On a close scrutiny of the cause and effect relationship, one can infer that the lack of even
minimal HR initiatives in the education segment is resulting in more serious HR
problems to the industry which, if unattended, may derail the economy’s progress.
Expenditure on Education in India
The Government expenditure on Education has greatly increased since the First five-year
plan. The Government of India has highly subsidized higher education. Nearly 97% of
the Central Government expenditure on elementary education goes towards the payment
of teachers' salaries.
2.3 Background of research study In Education sector monetary and non-monetary rewards play a vital role. Monetary
rewards consist of basic pay, bonuses etc, and non-monetary rewards consist of
recognition, training facilities, etc. And employees’ attitude towards it is an important
issue. Researching this issue will reduce turnover and attrition rate. Such a background
has resulted in the current research.
2.4 Problem statement Employee attitude in the corporate sector greatly influences performance, productivity
and motivation. There exists a need to conduct research in order to explore and improve
employee attitude. Hence this study focuses on Education sector and various issues
confronting it. One of them is attrition. The problem is extremely high in education
sector, with faculties facing problems related to recognition by the institutions. They
prefer changing jobs in return for better non-monetary rewards such as recognition.
The problem to address here is – “What is the employees’ attitude towards rewards in
educational institutions and how monetary and non-monetary rewards have an effect on
controlling attrition in the sector?”
2.5 Justification and significance of the research Employee turnover is a leading problem in the corporate world where it has to be tackled
like an emergency. Therefore research in this area becomes very crucial.
2.6 Research Objectives
To study attitudes towards monetary and non-monetary benefits.
To study the factors that motivates employees.
To identify the factors those motivate IT employees to leave the employer.
To study the employee attitude towards their job.
2.7 Introduction to Rewards A reward is a benefit for performing a given task. It assumes someone in a position to
evaluate and judge goodness. "Rewarding" means providing incentives to and recognition
of employees, individually and as members of groups, for their performance and
acknowledging their contributions to the agency's mission. There are many ways to
acknowledge good performance, from a sincere "Thank You!" for a specific job well
done to granting the highest level, agency-specific honors and establishing formal cash
incentive and recognition award programs.
Concepts like risk and reward, reward and punishment are based on the idea that people
do things, or avoid doing things, due to rewards. In psychology there is evidence that they
do not, and that conditioning and affective factors are much more important than the
rewards or punishments of outsiders.
Goals and Objectives of rewards
Improve performance
Employee Motivation
Enhancing team spirit
Employee retention
Employee development
Monetary Rewards The purpose of monetary incentives is to reward associates for excellent job performance
through money. Monetary incentives include profit sharing, project bonuses, stock
options and warrants, scheduled bonuses (e.g., Christmas and performance-linked), and
additional paid vacation time. Traditionally, these have helped maintain a positive
motivational environment for associates (Kepner, 2001).
Non-Monetary Rewards The purpose of non-monetary incentives is to reward associates for excellent job
performance through opportunities. Non-monetary incentives include flexible work
hours, training, pleasant work environment, and sabbaticals.
2.8 Introduction to Attitude An attitude can be defined as persistent tendency to feel and behave in a particular way
toward some object. The Nature and Dimensions of Attitudes Attitudes can be characterized three ways. First, they tend to persist unless something is
done to change them. Second, attitudes can fall anywhere along attitude may be
moderately unfavorable. Third, attitudes are directed toward some object about which a
person has feelings (sometimes called "affect") and beliefs. Attitudes can be broken down
into three components; emotional, informational, and behavioral. The emotional
component, the informational component and the behavioral component .
Functions of Attitudes
An understanding of the functions of attitudes is important to the study of organizational
behavior. Based on extensive review of surveys of employers, a recent analysis
concluded "the most important consideration in hiring and the biggest deficit among new
workforce entrants are the attitudes concerning work that they bring with them to their
jobs. Mr. Katz has noted that attitudes serve four important functions in this process.
The Adjustment Functions.
The Ego Defensive Function
The Value Expressed Function.
The Knowledge Function.
Changing Attitudes Employee attitudes can be changed, and sometimes it is in the best interests of
management to try to do so. Sometimes attitude change is difficult to accomplish because
of certain barriers. After these barriers are identified, some ways of overcoming them and
effectively changing attitudes are examined.
2.9 Effect of Rewards on Retention
Getting people to work for and with the organization as a team-and keeping them
working is never simple. When making a decision to join (or stay with) n organization,
most people sort through and try to prioritize a complex bundle of personal requirements.
This “hierarchy of needs”—as originally conceptualized by Abraham Maslow (as
explained in the illustration)—range from basic survival needs to the utmost
psychological desire for self-actualization. Many of these needs do not relate directly to
either salary or benefits.
Maslow’s hierarchy teaches that when an individual accomplishes each level,
“satisfaction” won’t necessarily be the result. Rather, the individual is likely to start
yearning for achievement at the next-higher level.
For example, once the individual obtains reasonable physical comfort (housing and
clothing) and physical safety (money in the bank, home equity, life insurance), the next
step might be to seek association with a prestigious firm. After reaching that milestone,
the individual might aspire for professional recognition, and so on.
Of the various hierarchical needs described by Maslow, only some have a direct link to
compensation. Clearly, money is a primary factor enabling the individual to meet
physical needs. Money also is key in achieving safety and security, primarily in the form
of adequate insurance and retirement savings. Even the need for prestige and status, as
satisfied by a new BMW or a spacious beach house, requires substantial funding.
However, over the full range of Maslow’s hierarchy, the majority of other needs are NOT
tied directly to base salary, bonus, or benefits. Rather, most of Maslow’s hierarchy
addresses needs associated with work activity and the workplace itself.
Self-actualization
Teaching professionals place professional considerations well ahead of their bank
balances. One or more of these scenarios are often familiar in the industry:
Competent teaching professionals “chase money” (by changing institutions) only
to return to more modest compensation at a institution where they have greater
opportunity for self-expression.
Talented teaching professionals struggle at close-to-starvation wages to stay
involved in teaching.
Each scenario illustrates the teaching professional’s strong motivation to reach the peak
of Maslow’s hierarchy, i.e., self-actualization. Maslow illuminates the concept thusly:
“A musician must make music, an artist must paint, a poet must write, if
he is to be at peace with himself. What a man can be, he must be. This is
the need we call self-actualization...it refers to man’s desire for
fulfillment…”
While teaching professionals probably have greater need for self-actualization than do
individuals in other careers, self-actualization is a VERY important part of the teaching
professional’s psychology. The idea that “a teacher must teach” has important
implications for compensation administration and management of the overall
organization.
Money alone will not offset a bad working environment or the lack of true career
opportunity. Employees rarely join (or leave) firms solely because of compensation or
benefits. Using the lessons taught by Maslow’s hierarchy, management of education
institutions must look to the whole institution and employment experience to attract and
retain appropriate staff.
When conditions are right, employees derive non-monetary compensation from those
aspects of the employment experience that provides value or satisfaction without
necessarily delivering a measurable reward. Said differently, non-monetary compensation
is nothing more complicated than “psychic income.” It rewards the employee in some
uniquely psychological way, largely unrelated to salary or employee benefits.
The hierarchy links the search for such opportunities directly to Maslow’s self-
actualization concept. Firms that ignore these needs will tend to have higher turnover and
operating costs and lower motivation and morale.
The essential question about monetary vs. non-monetary rewards is not an “either-or”
question. The best firms endeavor to deliver both. In the end, every employee makes a
subconscious calculation of the two
Monetary income + Psychic income = Total income
When available in reasonable quantities, psychic income helps the teaching professional
see a clear path toward advancement and satisfaction. Most faculties are able to make
rational decisions about the trade-off between professional satisfaction and economic
reward. Ultimately, most teaching professionals will choose the option that provides the
highest “total” income.
We should bear in mind, this is not an invitation to take advantage of the staff—the
management of education institutions should always research the true market value for
faculties and compensate their people fairly. The goal is to deliver and maintain a
reasonable balance between monetary and psychic income. In the end, institutions that
deliver both monetary income and physic income in a fair, and innovative manner will
attract, retain, and develop quality personnel, keep them satisfied, and foster organization
loyalty.
Above all, the institutions should remember that the employees are people, each one an
important part of the business family-not just a cog in a human machine that goes through
certain muscular motions every day with time out for refueling and maintenance. The
management should remember that their staff has heart and brains, feelings and ideas-and
is made of the same raw materials as them. Their energies are there to be used for their
own good and for the management. Some ways of harnessing these energies are:
1. Seeking and using employee's own ideas.
2. Keeping employees informed.
3. Expressing personal interest in employees.
4. Instilling pride in work well done.
These techniques concern various methods of directing employees toward main objective
- building a profitable business by satisfying customers. As one put these techniques to
use, we will find the job only half begun. The employee still needs more answers to this
very important personal question: "What is there in it for me?" This is not a cynical
question. It is another way of asking: "How much am I worth?” And the management
must provide answers for them as well as for itself.
Management must encourage employee ideas and provide the necessary mechanism for
obtaining them. Suggestion boxes and idea-discussion employee meetings are a couple of
possibilities. Encourage employees to think about problems of the business. Some
excellent ideas for their solution may be forthcoming. The management can carefully
consider all ideas, and if adopted, can commend or reward the giver. If not adopted, a
word of explanation and appreciation can always be given.
To effectively motivate, a definite system of incentives or rewards is necessary. Such a
system requires a combination of several groups of incentives, the most important of
which are:
1. Recognition-both monetary and non-monetary.
2. Social prestige.
3. Achievement.
4. Self-esteem
Recognition
Recognition-Monetary
The first thought concerning recognition is usually money. Good pay is vital. Good pay is
essential to employee satisfaction and must be carefully considered in all personnel
matters. The employee should not feel that he is underpaid. Pay is the best and most
tangible form of recognition of the employee's worth to the company. Besides actual pay
increases, other form of monetary recognition commonly used is a bonus plan.
Recognition-Non-monetary
Non-monetary recognition can be tangible or intangible. Examples of tangible
recognition: highlighting the key personnel’s’ training, experience, and outstanding
services. Intangible means of recognition are less formal and might be in the form of a
kind word of praise.
Social Prestige
Present-day management theory says it is no longer sufficient to satisfy only subsistence
needs. Employee retention will be obtained only when his social and self-esteem needs
are supplied on the job. "More money" often becomes an insistent demand when
management is concerned only with satisfying minimum cost-of-living needs. When the
"whole person" is involved within an enterprise, the employee is often content with less
money than he might make elsewhere, simply because he enjoys his work and
experiences self-esteem and accomplishment through his work.
Achievement Ambition falls off when employees do not have enough to do. The only way to solve this
problem is to establish reasonable work output standards for each job. Study and
evaluation of standards and employee worker contribution should result in a reasonable
level of output for each position. Living up to these standards brings a sense of
achievement. Self-Esteem
This group of needs differs from others in that it is concerned with the employee's view
of himself. Examples are the opportunity for recognition, status in the community,
respect, distinction, attention, importance, and appreciation. These are the most difficult
needs to provide.
Thus by observing above data it can be said that employee retention is a burning issue in
education field and there is a positive relation between monetary and non-monetary
rewards with attrition rate. Further part of the report focuses on the empirical evidences
and researches which gives a base to the study.
Chapter 3
Review of the Literature
Overview of the chapter
3.1 Review of the literature
3.2 Source of the literature reviewed
3.3 Relevant portion in literature that has bearing on the current research
3.4 Benefits to the Researcher from the review
3.1 Review of the literature
Among the many threats affecting the global workforce over the next few years,
the exit of employees could be the most damaging. Despite millions of unemployed
workers, there is an acute shortage of talent. Enough research has been done by firms to
retain their people. Research suggests that a company’s “stars” are the first ones to be
poached by competitors and thus are less likely to stay.
3.2 Source of Literature 1) Employees Again Saying 'Show Me the Money' - What a difference a year makes,
Research done by Business & Legal Reports, Inc., 2001 -
http://hr.blr.com/news.aspx?id=3394
Relevant portion in literature that has bearing on the current Research
While stock options were the hot currency of the New Economy scarcely 12 months ago,
employees today now regard cash - and freedom - as king, according to a new nationwide
survey of working Americans.
In the third annual BridgeGate Report, conducted in February, employee retention is
more likely to be influenced by salary increases than by improved benefits, flexible work
schedules or stock options. A total of 682 part-time and full-time employees were asked
which factors would be most likely to convince them to continue working for their
current employer.
The majority of respondents - slightly more than 50 percent - indicated that "a raise"
would most influence them to remain with their present company, up from the 46 percent
who cited a salary hike in last year's report. By contrast, just 40 percent of those surveyed
placed non-monetary concerns ahead of increased pay.
This year's survey marks the first time in the three-year history of the Bridge Gate Report
that significantly more respondents said they would remain at a job for higher
compensation, over the combined total of respondents most interested in non-monetary
offerings - benefits, flexibility, stock options and training.
In perhaps the most significant finding of the report, fully one in seven of those polled
could not identify any specific action employers could take to ensure retention, up from
one in 16 two years ago.
"Increasingly, people are again saying, `show me the money,' I'll figure out the rest of my
life on my own," said Dudley Brown, managing director of Bridge Gate. "Half of those in
this year's sample don't buy the idea of assigning responsibility for their career to their
employer. It's like investing - individuals want to take control of their destiny, whether in
the market or with training, benefits and the like. That's especially true now, amid the
growth of enabling services that let you do it yourself."
"Employees don't even know what it would take to get them to stay - how damning for
employers, and bad news for workers as well," Brown said. "What's truly frightening for
companies is simply this: how do you make an employee happy who doesn't even know
what it would take to get them to stick around? They're that disillusioned, and the
percentage is going up every year, more than doubling since our first survey."
"All of this underscores the trend toward a 'free agent nation' and signals a decisive move
away from corporate paternalism," said Brown. "And that in turn raises a huge issue for
employers and employees alike: how do you compete with people who are thinking like
free agents?"
In last year's survey, 46 percent stated they would stay on for a salary increase, with an
equal percentage (in the aggregate) responding to various non-monetary rewards:
employee benefits, flexibility, stock options or training. The inaugural survey, released in
early 1999, found that less than half the sample (43 percent) named "a raise" as the
primary influencing factor, while 50.5 percent cited non-monetary options.
Employee loyalty and factors influencing retention were often based on the gender, age
and income of the respondents:
• Female employees are more interested in a flexible work schedule than their male
counterparts (17 percent vs. 11 percent) and were more likely to respond
positively to "a raise" (52 percent vs. 48 percent); 18 percent of males cited
improved benefits, as did 14 percent of females. Only eight percent of males
identified stock options, as opposed to 17 percent of males in the year 2000
survey. The female response to stock options remained consistent from last year's
survey, at six percent.
• In every age group but those 55 and older, roughly 50 percent placed the highest
value on increased pay. For those 55-to-64, 48 percent cited "a raise," but for
employees over 65, that response dropped dramatically to nine percent.
Interestingly, both the oldest group, the over 65s, and the youngest, the 18-to-24s,
ranked flexible work schedules as their second priority, at 31 and 23 percent,
respectively. Among those ages 35-to-44, improved benefits received the second
highest response, at 23.5 percent.
While household income plays a role in the employee retention debate, that role
isn't always predictable. Of those respondents with household incomes of less
than $25,000, 47.5 percent said more money would influence a decision to stay
with an employer, while 21 percent ranked improved benefits first. Conversely, of
individuals with household incomes in excess of $75,000, 52.5 percent said they
would continue with a current employer if given "a raise," while a scant 11
percent cited improved benefits as their employer's top lure.
Purpose
The purpose is to highlight the attitude of employees towards benefits.
Methodology
The method carried out is survey.
Conclusion
Right benefits to employees increases positive attitude of the employees.
Benefits to the Researcher from the review.
The researcher learnt many aspects of employee attitude towards rewards. Literature
review as served as a basis for the current research.
Source of Literature 2) Employee Retention Emerges as Top Consideration in Benefits Strategies, Research done by Business & Legal Reports, Inc., 2007 - http://hr.blr.com/news.aspx?id=75507 Relevant portion in literature that has bearing on the current Research
More employers are citing employee retention as the primary objective in putting
together a benefits plan, according to a study by MetLife.
Last year, 55 percent of employers identified employee retention as a top objective in
putting together a benefits plan, up from less than 50 percent in 2003.
In the five years the company has been conducting the study, 2006 marked the first time
employers cited employee retention over controlling health and benefits costs as the top
priority in putting together a benefits plan.
The study also found a correlation between benefits satisfaction and job satisfaction.
Among employees who are "highly satisfied" with their benefits, 80 percent indicated
strong job satisfaction, up from 65 percent in last year's study.
Seventy-two percent of employees who responded to the survey said workplace benefits
were a reason for joining their current employer, and 83 percent said it is a factor for
remaining there.
The survey found that married employees and those with children were more likely to
cite benefits as a top consideration in joining their current employer. Nearly one-third (32
percent) of married employees and 41 percent of young families (parents with children
under six-years-old) stated that workplace benefits were a top consideration for joining
their current employers, while only 10 percent of singles agreed it was a top
consideration for them.
"While employee retention is a major benefits objective for employers, controlling costs
is a close second," says Ronald Leopold, MetLife vice president. "The strong relationship
between benefits satisfaction and job satisfaction indicates that there is more pressure
than ever on employers to strike this balance and utilize benefits strategically to achieve
both objectives."
The employee survey polled 1,202 full-time employees. The employer survey consisted
of 1,514 interviews with benefits decision-makers at companies.
Purpose
The purpose is to highlight the impact of benefits on retention of employees.
Methodology
The method carried out is survey.
Conclusion
Better benefits given to employees increases positive attitude of the employees towards
the job as well as the organization.
Benefits to the Researcher from the review.
The researcher learnt many aspects of impact of benefits on retention of employees.
Literature review as served as a basis for the current research.
Source of Literature 3) The Power of Positive Feedback, by Bob Nelson, 1997 - http://www.opm.gov/perform/articles/090.asp Relevant portion in literature that has bearing on the current Research
"You get what you reward." Bob Nelson, author of 1001 Ways to Reward Employees,
made this statement during the "TRANSFORMATIONS '97" post-conference workshop,
"Making Effective Use of Employee Recognition." Nelson particularly stressed the value
of positive feedback, immediate recognition, informal recognition, and effective program
design.
Positive Feedback
Immediate Recognition
Informal Recognition
Designing Programs
Positive Feedback. Nelson emphasized positive feedback throughout the workshop and
said supervisors should remember that it can be a motivating force for some employees.
He suggested that when delivering feedback or presenting informal recognition,
supervisors should remember to use the "I" format:
I saw what you did
I appreciate it
It's important
It makes me feel....
Immediate Recognition. Nelson suggested three different methods that supervisors or
managers can use to give their employees immediate recognition:
give the praise or recognition directly to the employee;
give the praise while another employee is present; or
give the praise about the employee to another manager or supervisor.
Informal Recognition. While on-the-spot praise is an immediate and easy method of
recognizing employees' performance, Nelson noted other ways that employees could be
given informal recognition. He gave several effective, low cost, and easy-to-do examples:
create a wall of fame by displaying photos of achievers, give certificates of appreciation,
present balloons, display computer banners, give award pins, or create a special award.
Nelson said that designers of low-cost awards programs should be creative, the award
should match the achievement, and the award should be given as soon as possible after
the achievement.
Designing Programs. Nelson also gave some suggestions to follow when designing a
recognition program:
Focus on a few areas or goals that will have the most impact. Where should you
direct your recognition efforts?
Involve your target employee group in the design process. Employee input helps
to gain employee buy-in for the new program.
Announce the awards program with a fanfare. Let everyone know about the
program.
Make the program criteria clear. Make sure everyone knows about the program,
its criteria, and the nomination process.
Publicly track the process of the program. Use graphs, charts, and pictures to
show that goals are being met, to track program activity, and to show who its
recipients are.
Have lots and lots of qualifying recipients. Make sure everyone has an equal
chance to receive recognition, not just a select few.
Allow for flexibility and choice of rewards. Have a variety of awards so managers
have several choices.
End or review the program as needed. If the program is not working, it is better to
end it quickly and develop a new one.
Link informal and formal awards. Ensure that informal awards are in line with the
formal awards structure; do so by making informal awards a subset of the formal
awards programs already in place.
Find ways to sustain the behavior. Once you have rewarded employees for their
efforts, look for other ways to maintain their motivation.
Nelson summarized by saying:
"While money is important to employees, what tends to motivate them to perform and to
perform at higher levels is the thoughtful, personal kind of recognition that signifies true
appreciation for a job well done.
Purpose
The purpose is to highlight the impact of recognition and positive feedback on employee
satisfaction.
Methodology
The method carried out is survey.
Conclusion
Positive feedback and recognition given to employees enhances job satisfaction and
improves employee morale.
Benefits to the Researcher from the review.
The researcher learnt the impact of recognition and positive feedback on employee
satisfaction. Literature review as served as a basis for the current research.
Chapter 4
Research Design
Overview of the chapter
4.1 Type of research
4.2 Research method
4.3 Research technique
4.4 Data collection sources
4.5 Data gathering procedure
4.6 Population of the study
4.7 Statistical tools
4.8 Scope of the study
4.9 Limitations of the study
4.10 Operational definition of concepts
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
4.1 Type of research
Technique applied in the study is Descriptive research. It includes surveys and fact-
findings of different kinds the major purpose of Descriptive research is description of
the state of affairs as it exists at present.
4.2 Research method
Survey method has been used to do this research.
4.3 Research technique
Questionnaires covering various parameters of employees’ attitude to job and benefits
have been used to do this research.
4.4 Data collection sources METHODOLOGY
PRIMARY DATA SECONDARY DATA
1. Questionnaire 1. Internet
2. Direct Interview 2. Books
3. Articles
Primary data has been collected for the purpose of the survey. Secondary data has
been used to review the literature.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
4.5 Data Gathering Procedure Data has been gathered by interviewing the employees and through interpreting the
result of questionnaire.
4.6 Population of the study
Sample size: 76
Sample description: Faculty members who have experience of more than 3 years.
4.7 Statistical Tools
Tables, graphs and charts have been used to show the analysis of the statistical data. 4.8 Scope of the study
The project aims to give relevant information about the study and the method
used in the research.
This project also aims to suggest suitable recommendations and suggestions
inferred from the findings.
The study is limited to educational institutions at Bangalore.
4.9 Limitations of the study
The concept is highly abstract and difficult to study
The study is limited to educational institutions at Bangalore.
Time constraint and limited sample size
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
4.10 Operational definition of concepts
Attitude: An attitude can defined as persistent tendency to feel and behave in a
particular way toward some object.
Retention: It is a process of holding back people in an organization by providing
them extra benefits.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Chapter 5
Data Analysis and Interpretation
Overview of the chapter
5.1 Data analysis and interpretation
5.2 Findings
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
5.1 Data analysis and interpretation
Data has been collected based on different parameters relating to employees’ attitude towards:
• Effective training programs
• Elements of motivation
• Mentorship program
• Work environment
• Career growth
• Job challenges
• Freedom and autonomy
• Recognition
• Compensation
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 1:
Preference for Monetary benefits by the Respondents.
Particulars Percentage
Bonus 30%
Incentives 70%
Preference for Monetary benefits by the Respondents
0%
10%
20%
30%
40%
50%
60%
70%
Bonus Incentives
Monetary Benefits
fig.1
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation:
From the above data it is seen that majority of the respondents i.e., 70% faculty
members prefer to receive incentives and the rest of 30% respondents are satisfied
with Bonus as a measure of reward in terms of money.
Inference:
The study revealed that there is more demand for incentives as a part of monetary
reward when compared to Bonus and other types of benefits. Most faculty members
prefer to have Incentives from the institute, which would motivate them better than
any other monetary benefits. Hence it can be recommended that providing incentive
can be a strong means of motivating employees.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 2:
Respondent’s comment on their attitude towards non-
monetary rewards.
Particulars Percentage V.Positive 20% Positive 60% Negative 15% V.Negative 5%
Respondent’s comment on their attitude towards non-
monetary rewards
fig.2
20%
60%
5%15%
20%
V.Positive
Positive
Negative
V.Negative
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation:
From the above data it is seen that majority of the respondents i.e., 60% faculty
members have a positive attitude towards their job; whereas 20% of them have a very
positive attitude. 15% of the respondents tend to possess negative feeling while very
less number of respondents i.e., 5% possess very negative feeling towards their job.
Inference:
By analyzing the above data it can be said that most of the employees in education
sector tend to have positive attitude towards their job and they love their work. As the
above graph shows still there are some people who does not like the job. Hence
proper measures should be taken to change their attitude towards job and to make
them feel comfortable in the workplace. Though the ratio of people possessing
negative attitude is negligible, timely action taken by the institutes can help in
controlling further adverse impacts.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 3: Preference for non-monetary benefits by the respondents.
Particulars Percentage Training Facilities 5% Flexible Working Hours 26% Leave Benefits 30% Recognition 44%
Preference for non-monetary benefits by the respondents
fig.3
5%
25%
29%
41%Training Facilities
Flexible Working Hours
Leave Benefits
Recognition
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation:
From the above data it is seen that majority of the respondents i.e., 44% of faculty
members ask for recognition from the Institute for their work. The next set of faculty
members i.e., 30% respondents would like to enjoy leave benefits in return to their
work. While the next group presumes non-monetary benefit as having flexible
working hours and the least number of respondents i.e., 5% say that they prefer
training facilities to be given.
Inference:
The study revealed that majority of faculty members demand for recognition by the
institute for the work they do rather than having leave benefits or flexible working
hours or training facilities. Hence it can be said that recognition plays a vital role in
enhancing employee morale and job satisfaction in education sector compared to
other things. However, the educational institutions can also go for providing leave
facilities, flexible working hours as such demands stand immediately next to
recognition. While looking into the data obtained by the study training facilities have
a least noticeable effect on reducing attrition in education sector.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 4:
Respondent’s liking of job.
Particulars Percentage
I Love It Immensely 20%
I Love It 43%
The Job Suits Me 19%
Looking for a Change 18%
Respondent’s liking of job
fig.4
20%
43%
19%
18%
I Love It Immensely
I lLove It
The Job Suits Me
Looking for a Change
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation: The above data shows that 35% of faculty members love their job. While 18% of the
faculty members love the job immensely, 29% think that the job just suits them.
Another set of respondents who include 18% of faculty members are really looking
for a change in the job as well from he field itself.
Inference:
By analyzing the above data it can be said that most of the faculty members conceive
their job very seriously and they love this work. They feel that work is more important
than other things in life. Some people feel that the job suits them and they want to
make their career in the field. In contrary to this there are few youngsters who are
looking for a change in their job and few among them want to get out of education
sector itself.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 5: Factors indicating job satisfaction
Particulars Percentage Good Compensation 23% Recognition 58% Working Conditions 10% Promotions 9%
Factors indicating job satisfaction
fig.5
0%
10%
20%
30%
40%
50%
60%
70%
GoodCompensation
Recognition WorkingConditions
Promotions
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation:
The survey conducted in various educational institutions in Bangalore revealed that
recognition is considered to be a strong factor in measuring job satisfaction by a large
number of respondents i.e., 58%. The next set of respondents i.e., 23% faculty
members consider good compensation would lead to job satisfaction. While 10% of
respondents prefer good working conditions, the rest i.e., 9% say promotion would
make them feel more satisfied on job.
Inference:
The study shows that recognition plays a vital role in satisfying employees’ self
actualization needs. A mere recognition by the institute for the work done by them
would make them satisfied and motivate them to work harder. Money matters next to
recognition followed by good working conditions and promotions. Here it is clear that
the non-monetary benefits have greater impact on job satisfaction when compared to
compensation, the only monetary benefit that has relatively less scope in the matter.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 6:
Impact of compensation on level of motivation.
Particulars Percentage
Yes 35%
No 65%
Impact of compensation on level of motivation
fig.6
0%
10%
20%
30%
40%
50%
60%
70%
Yes No
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation:
The above data shows that majority of respondents i.e., 65% feel that compensation
does not have any direct impact on motivation. While the rest of 35% feel that good
compensation paid by the institute would motivate them to work harder.
Inference:
By looking at the results of the survey we come to know that most of the people think
there is something other than money that would motivate them. This may include non-
monetary benefits, good working environment, work life balance and other factors.
But some people have a perception that compensation directly leads to motivation.
They say – “better the pay, better the work done”. Besides this contradiction
education sector is the only field in which the level of motivation by work alone is
higher than in any other sector.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 7:
Factors influencing motivation on job.
Particulars Percentage
Job itself 54%
Working Environment 41%
Personality Development Programs 5%
Factors influencing motivation on job
fig.7
54%41%
5%
Job itself
Working Environment
PersonalityDevelopment Programs
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation: From the above data it is seen that majority of the respondents i.e., 54% faculty
members are motivated directly by the job. Availability of good working environment
was preferred by 41% of respondents. The remaining 5% of respondents need
personality development programs to be conducted in order to enhance motivation.
Inference:
The study revealed that teaching job is considered to be the strongest factor that
enhances the level of motivation among employees. Nothing else will motivate the
faculty members as the Job itself does. Though working environment should not be
neglected as it contends immediate next to job. Good working environment provided
by the institute make the employees relax in their work place. However very less
number of people feel that the personality development programs will also contribute
in motivating the employees.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 8:
In-house recreational facilities provided by Institutes.
Particulars Percentage Yes 80% No 20%
In-house recreational facilities provided by Institutes
0%
10%
20%
30%
40%
50%
60%
70%
80%
Yes No
fig.8
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation: The above data shows that 80% of the respondents say that their institution provides
in-house recreational facilities. Only 20% of the respondents said that their institute
does not provide any in-house recreational facilities.
Inference:
The study revealed that most of the institutions in Bangalore have very good
infrastructure. Employees are provided with various in-house recreational facilities.
And thus in current scenario institutions are focusing mainly on satisfying employees
needs. But there are still few institutions, which need to focus on providing
infrastructure to the faculty members. A satisfied employee always contributes to
improve the overall performance of the institution.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 9: Institutions providing additional facilities to faculty members.
Particulars Percentage Yes 78% No 22%
Institutions providing additional facilities to faculty members
fig.9
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Yes No
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation: The above data shows that 78% of faculty members say they can get additional
facilities from their institutions on their request. 22% of the faculty members said that
their institution does not provide any additional facilities.
Inference:
The study revealed that the most of the institutions provide extra facilities to the
faculty members on their request. Such facilities would include organizing a seminar,
connection to Internet; access to good libraries like IIM library, British library, etc.
the respondents who had an access to such facilities were more happy and satisfied
when compared to others. Hence it can be recommended that the institutions can take
certain measure to improve their infrastructure facilities and they can also focus on
providing additional facilities to their employees.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 10:
Factors influencing increase in attrition rate.
Particulars Percentage Higher Pay 25% Good Working environment 30% Better Prospects 45%
Factors influencing increase in attrition rate
fig.10
25%
45%
30%
Higher Pay
Good WorkingEnvironmentBetter prospects
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation: The above data shows that majority of respondents i.e., 45% faculty members say
better job prospects provided by other institutions influence them to leave the present
job. 30% respondents said bad working environment has a greater influence on rising
attrition rate. The rest of 25% feel that higher pay given by other institutions make
them leave their job.
Inference:
By analyzing the above data it can be said that employees have greater attraction
towards better prospects available on job. The above graph reflects the same, as
majority of respondents voted for it. There is equal demand for good working
environment and better pay too. Hence it can be recommended that the institutions
should focus on providing better prospects on job in order to retain its employees.
Providing better working environment and good compensation will also help in
retaining talent in the organization.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 11:
Rate of employee turnover in organizations.
Particulars Percentage Yes 65% No 45%
Rate of employee turnover in organizations
0%
10%
20%
30%
40%
50%
60%
70%
Yes No
fig.11
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation: From the above data it is seen that 65% of respondents feel that there exists employee
turnover in their organization. The remaining i.e., 35% of the respondents feel that
employee turnover is very low in their institution and few among them said such
problem do not exist at all in their institution.
Inference:
Analysis of the above data gives a picture that employee turnover does exist in most
of the educational institutions. The problem of attrition also has its footprint in
education sector and the rate of attrition is rising now a days. But still there are some
institutions that are successful in retaining the talents in their organization. By the
above analysis it can be recommended that the institutions should take timely
measures to prevent employee turnover. If not, in very short period, this may change
the people’s attitude towards education sector.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 12:
Causes for attrition in Education sector.
Particulars Percentage
Lack of Challenging Work 8%
Lack of Job Prospects in Current Institute 43%
Lack of Growth 35%
Others 14%
Causes for attrition in Education sector
fig.12
8%
43%35%
14%
Lack ofChallengingWorkLack of JobProspects incurrent InstituteLack of Growth
Others
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation: The above data shows that majority of respondents i.e., 43% faculty members think
that lack of good prospects in current job has a direct impact on increasing the
attrition rate in education sector. 35% of the respondents feel that lack of growth
makes the attrition rate to rise. The next set of respondents i.e., 14% feels other factor
such as work life balance, good compensation influence attrition rate to grow. And
rest of 8% respondents feel that lack of challenging work causes attrition in education
sector.
Inference:
The study revealed that lack of job prospects in current institution makes the
employees to change the job. The institutions with all the amenities would attract the
best talent and retain the same. Lack of growth in current job also demotivates
employees and thus contributes in rising attrition rate. Other factors like work life
balance, good compensation also causes attrition. Employees also look for
challenging work. Thus, the institutions should focus on providing better job
prospects in order to prevent attrition in their organization.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 13:
Flow of positive attitude from institutions to control attrition.
Particulars Percentage
Yes 75%
No 25%
Flow of positive attitude from institutions to control attrition
0%
10%
20%
30%
40%
50%
60%
70%
80%
Yes No
fig.13
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation: From the above data it is seen that 78% of respondents say that their institution takes
certain measures to reduce attrition rate. While 22% of respondents feel that their
institution does not take any measures to prevent attrition.
Inference:
The study revealed that most of the institutions are worried about increasing attrition
rate in their organization and they take timely measures to prevent it. This reflects
management’s care towards their employees. But few institutions will not take any
measures to control attrition in their organization. Inefficient management acts as a
hurdle to implement preventive measures to control attrition rate in their organization.
Thus the organizations should focus on taking certain measures to improve the quality
of management and to reduce attrition rate.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 14:
Measures taken by Educational institutions to control attrition.
Particulars Percentage
Better Work Life 46%
Flexible Timing 20%
Better Pay 34%
Measures taken by Educational institutions to control attrition
0%5%
10%15%20%25%30%35%40%45%50%
Better Worklife
Flexible Timing Better Pay
fig.14
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation: The above data shows that majority of the respondents i.e., 46% faculty members say
that their institutes focus on providing better work life to their employees as a
measure of controlling attrition. 34% respondents say their institution provides better
compensation to reduce the rate of attrition and 20% of the respondents feel that
flexible working time is used as a measure of controlling attrition rate.
Inference:
Analysis of the above study reveals that providing better work environment is used as
a measure to control increasing rate of attrition in education sector by most of the
institutes. Some organizations feel higher pay would attract the employees and by
receiving good compensation people wish to continue their work in the organization
very less number of institutions consider providing flexible timing to employees
would make them relax in the work place and they would love to continue their work.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 15:
Respondents’ preference to measures of controlling attrition.
Particulars Percentage Flexible Timing 40%
Challenging Work 24%
Better Pay 36%
Respondents’ preference to measures of controlling attrition
0% 10% 20% 30% 40%
FlexibleTiming
ChallengingWork
Better pay
fig.15
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation: From the above data it is seen that majority of the respondents i.e., 40% faculty
members feel flexibility in working time can be adopted by the institutions to reduce
attrition rate. 36% of the respondents think that the institutions can adopt better
compensation policies to reduce attrition rate. The rest of 24% respondents feel
challenging work can be provided by the institutions can act as a better measure in
reducing attrition rate.
Inference:
By analyzing the above data we can say that most of the employees look for flexible
working hours. The institutions that provide the faculties what they need will succeed
in retaining them. As few faculties prefer better money to be paid, they can provide
good compensation as another measure. The management also should facilitate
challenging work to motivate the employees. Thus, employee focused policies can
help the organization to achieve its goals and objectives much easier, much faster and
much better.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 16: Faculty members’ response towards continuing their relationship
with the institute
Particulars Percentage Will Stay 63%Will Leave 37%
Faculty members’ response towards continuing their relationship
with the institute
fig.16
0%
10%
20%
30%
40%
50%
60%
70%
Stay with Institute Leave the Institute
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation:
From the above data it is seen that majority of the respondents i.e., 63% faculty
members prefer to stay with the institute. While 37% respondents would like to quit
the job.
Inference:
By analyzing the above data it can be said that most of the employees are loyal to the
organization they work for and they would like to continue their relationship with the
institution for further period. But few people said that if given an option they would
leave the institute for various reasons including bad working environment, lack of
recognition for their work and such other factors. Hence the institutions that are facing
such problems should focus on understanding faculty members’ needs and take
necessary measures to overcome it.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 17:
Institutions’ response to improve employees’ attitude on job
Particulars Percentage Yes 65% No 45%
Institutions’ response to improve employees’ attitude on job
0%
10%
20%
30%
40%
50%
60%
70%
Yes No
fig.17
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation:
The above data shows that 65% of respondents are happy about the fact that their
institution takes necessary measures to improve their attitude on job. But 45% of
respondents said that their institution does not take any steps to improvise its
employees’ attitude towards job and organization.
Inference:
The study revealed that most of the institutions have recognized the importance of
human resource in the organization and thus they are stepping towards analyzing the
employees’ problems. Most of the institutions include certain programs which
enhances employee motivation. This will lead to employee satisfaction and thus result
in retaining talent in the organization. But some institutes have not taking any such
activities. This would lead to a serious issue of increasing attrition rate. Thus, such
institutions should focus on implementing certain programs that would create a sense
of belongingness in the employees towards the organization.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 18: Respondent’s preference for accepting overseas projects provided by
the institute.
Particulars Percentage
Yes 92%
No 8%
Respondent’s preference for accepting overseas projects provided by
the institute
0%10%20%30%40%50%60%70%80%90%
100%
Yes No
fig.18
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation:
The above data shows that 92% of respondents are happy to accept overseas
education projects or training facilities provided by the institution. But 8% of
respondents do not wish to accept such projects.
Inference:
By analyzing the above data it can be said that most of the faculty members wish to
accept overseas education projects offered by the institutions as they provide them
better exposure. They feel that such projects give them recognition in the society. But
some faculty members avoid such offers, as they do not like going abroad for various
reasons like family issues, health problem and their unwillingness to fly abroad.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Table 19:
Counseling facilities provided by the institutions.
Particulars Percentage
Yes 60%
No 40%
Counseling facilities provided by the institutions
0%
10%
20%
30%
40%
50%
60%
Yes No
fig.19
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Interpretation:
The above data shows that 60% of respondents say that their institution provides
counseling facilities to them. While 40% say their institution provides no such
facilities.
Inference:
By analyzing the above data it can be said that most of the institutions consider
providing counseling facilities to faculty members help the employees to know their
problems and to deal with them in a proper manner. Few institutions still are not able
to provide any counseling facilities to its faculty members because of various reasons.
The reasons would include management’s negligence towards employees and such
other factors. Such institutions should try to focus on providing counseling facilities
to its employees in order to know their problems.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
5.2 FINDINGS
1. There is more demand for incentives as a part of monetary reward when
compared to Bonus and other types of benefits.
2. Most of the employees in education sector tend to have positive attitude
towards their job and they love their work.
3. Majority of faculty members demand for recognition by the institute for the
work they do. Next comes leave benefits followed by flexible working hours
and training facilities.
4. Recognition plays a vital role in satisfying employees’ self actualization
needs. Money matters next to recognition followed by good working
conditions and promotions.
5. Most of the people think that the factors including non-monetary benefits,
good working environment, work life balance and other factors would
motivate them better than money.
6. Teaching job, by itself, is considered to be the strongest factor that enhances
the level of motivation among employees.
7. In current scenario most of the institutions are focusing mainly on satisfying
employees needs. Employees are provided with various in-house recreational
facilities.
8. Faculty members can also avail additional facilities on request like organizing
a seminar, connection to Internet; access to good libraries like IIM library,
British library, etc.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
9. Highest number of respondents think that better growth prospects is the most
important factor for existing of job. And they also felt that need for increased
responsibility is the most influential factor for quitting a job.
10. The institutions with all the amenities would attract the best talent and retain
the same. While Lack of growth in current job, challenging work, work life
imbalance, unfair compensation demotivates the employees.
11. Most of the institutions are worried about increasing attrition rate in their
organization and they concentrates on taking timely measures to prevent it.
12. Providing better work environment is used as a measure to control increasing
rate of attrition in education sector by most of the institutes.
13. Most of the employees look for availability of flexible working hours on job.
14. Most of the employees are loyal to the organization they work for and they
would like to continue their relationship with the institution for further period.
15. Most of the institutions include certain programs which enhance employee
motivation and thus are responding positively to improve employees’ attitude
on job.
16. Most of the faculty members wish to accept overseas education projects
offered by the institutions as they provide them better exposure.
17. Most of the institutions consider providing counseling facilities to faculty
members help the employees to know their problems and to deal with them in
a proper manner.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Chapter 6
Conclusion and Recommendations
Overview of the chapter
6.1 Conclusion
6.2 Recommendations
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
6.1 Conclusion
Employee turnover rate is increasing in education sector and changing
employees’ attitude towards job is the main reason to it. Faculty members’ need
recognition rather than any other benefits received in terms of money. They wish the
management to focus on solving their problems.
These conclusions indicate that company should identify their critical
employees; understand their needs with regards to career and the environment at work
and must create a satisfying professional life at the organization and also be able to
continuously meet the expectations and needs of these employees. It is through
proactive efforts that the company can reduce the likelihood of losing the critical
employees.
6.2 Recommendations
The study conducted to investigate the interdependence of the variables
affecting employees’ attitude towards job and its effect on attrition rate has led to the
findings and conclusions as presented in the preceding chapters. Based on those
findings the following suggestions have been made. In order to keep employees
satisfied and retain them organisations can adopt the following practices:
Provide better training facilities for employees.
Customized compensation and incentive plans
Provide updated technology and software packages.
Attribute time for development.
Provide challenging work profile and clear career path.
Provide and open work culture facilitating individual growth.
Create a dynamic organisation open to changes.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Ensure transparency in all processes.
Ensure competitive compensation plan, which is on par industrial standards.
Increase responsibility and quality work.
Avoid indifferent attitude and interference in work.
Improve communication and communication channel.
Provide flexibility in terms of work hours.
Avoid politics, bureaucracy, favoritism that could de-motivate Employees.
Management should adopt pro-active nature rather than reactive nature to
problem solving.
These are practical employee management suggestions, which will bring about
more productive and better-satisfied employees. Use of specific incentives rewards in
monetary and non-monetary forms constitute tangible results for the employee.
Employee who are recognized for their worth to the institute and rewarded
accordingly will multiply this value in increasing profits and the social value of the
organization.
Implementing these suggestions in no way implies lack of leadership. In fact,
such procedures actually increase leadership ability. Each employee is invited to assist
management and is expected to participate in plans and discussions. Thus,
management and employees have similar responsibility in maintaining good
leadership.
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
Chapter 7
Annexure
Overview of the chapter
7.1 Questionnaire
7.2 Bibliography
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
7.1 QUESTIONNAIRE Name:
Age:
Gender: Male Female
Name of the Institute:
Number of years of experience:
Educational qualification:
Marital Status: Single Married Monthly income:
< 10000 10000 -20000
20000-30000 30000-40000
40000 and above
1. What sort of monetary benefits would you prefer?
Bonus Incentives
2 How do you comment on your attitude towards non monetary rewards?
Very positive Positive
Very negative Negative 3 What sort of non monetary benefits would you prefer?
Training facilities Flexible working hours
Leave benefits Recognition 4 Do you like your job? I love it immensely I love it
The job suits me Looking for a change
5 According to you what factors indicate job satisfaction? Good compensation Recognition Working conditions Promotions
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
6 Does compensation lead to motivation directly?
Yes No
7 What factors according to you motivate you better on your job?
Job itself Working environment Personality development programs
8 Does your institution provide in-house recreational facilities? Yes No
9 Does the management provide additional facilities if requested by the faculties?
Yes No 10 if yes, what kind of facilities would you prefer? …………………………………………………………………………………
11 According to you what factors influence the faculties to leave the institute?
Higher pay given by others Bad working environment
Better prospects 12 Is there employee turnover in your institute?
Yes No 13 What according to you causes attrition in education sector?
Lack of challenge in work Lack of job prospects in Current institute
Lack of growth Others 14 Have any measures been taken by your institute to reduce attrition rate?
Yes No 15 if yes, what kinds of measures
Better work life Flexible timing Better pay
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
16 According to you what measures could be taken to reduce attrition rate in your institute?
Flexible timing Challenging work
Better pay 17 Given a chance would you stay with institute or leave it?
Will stay with the institute Leave the institute 18 Does the institute take any measures to improve your attitude on job?
Yes No 19 Would you be interested in accepting overseas education projects?
Yes No 20 Does the institute provide counseling facility to the faculties?
Yes No 21 How do you think an individual employee’s attitude towards job could be improved? …………………………………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………
Employees’ Attitude Towards Monetary And Non-Monetary Rewards
M P Birla Institute of Management
7.2 BIBLIOGRAPHY REFERENCES:
• HRM- George T Milovich & John W Boudren
• Human Resource and Personnel Management- K.Aswathappa.
• Organizational Behavior 9th edition - Stephen P. Robbins
WEBLIOGRAPHY: http://www.opm.gov/perform/articles/090.asp http://hr.blr.com/news.aspx?id=3394 http://hr.blr.com/news.aspx?id=75507 http://humanresources.about.com/od/rewardrecognition/Rewards_Recognition_Awards_Thank_You_Ideas.htm www.hrmguide.com www.ninja.com www.wikipedia.com